http://www.yorkshirepost.co.uk/leeds/Taxman-drops-Leeds-Utd-legal.3163509.jp
Taxman drops Leeds Utd legal challenge THE dramatic saga surrounding Leeds United's financial collapse appeared to be on the verge of closure last night after the taxman formally withdrew a legal challenge to the club's administrators, KPMG. HM Revenue and Customs (HMRC) had been due to face KPMG in the High Court on Monday after initially launching a challenge in early July to the way the administrators secured a creditors' agreement to resell the club to Ken Bates. Under the deal, creditors would have only received 1p for every pound Leeds owed them. HMRC, which was owed £7.7m when Leeds went into administration on May 4, went to court only an hour before a 28-day deadline for creditors to challenge the controversial company voluntary arrangement (CVA) was due to pass. As a result, KPMG responded by putting the club up for sale in a move which effectively bypassed the existing CVA. Mr Bates won the ensuing auction and has since resumed control of the club which nevertheless suffered a 15-point penalty for exiting administration outside the normal CVA procedure. The controversial decision to put the club up for sale outside the CVA process eventually secured a better deal for creditors, who will receive an initial 11p in the pound, potentially significantly more if the club returns to the Premiership in the next ten years. KPMG and HMRC both declined to comment last night. _______________________________________________ the Leeds List is an unmoderated mailing list and the list administrators accept no liability for the personal views and opinions of contributors. Leedslist mailing list [email protected] http://list.zetnet.co.uk/mailman/listinfo/leedslist Join The Leeds United Supporters Trust at www.lufctrust.org
